| dc.description.abstract | The quality of financial information is crucial in to organization’s success and sustainability in
today’s highly competitive and global economic environment. According to IFRS (2013), the
fundamental qualitative characteristics of useful financial information are relevance and faithful
representation with the enhancing qualitative characteristics of useful financial information
including; comparability, verifiability, timeliness and understandability. The study covered these
characteristics and how they enhance performance.
The study variables included relevance, faithful representation and understandability in relation
to performance of SMEs. A survey design was used in this study to cover SMEs in different
sectors of the economy and a qualitative approach used to analyze data.
A sample size of 127 respondents from different selected SMEs in the areas of Nateete, Busega
and Kyengera. Questionnaires, with closed questions were used to collect data from respondents.
From the findings, the quality of financial information in SMEs is average significantly as
explained by relevance, faithful representation and understandability of the information.
However there are some other external factors such as loan access, technical competence among
others which are contributing factors to the going concern of any business enterprise.
From the findings of the study, it is recommended that business owners should prepare relevant,
understandable, accurate and reliable financial information to enhance decision making and
improve performance of small and medium enterprises. | en_US |
